Tuesday March 9, 2010 - 20:05:59 GMT
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FXTimes: Daily Technical Update GBP/USD Another Bearish Swing?
GBP/USD Another Bearish Swing?
- Daily and 4H: The GBP/USD broke below a short-term rising channel support, which
you can see in the 4H chart. A swing projection in the 4H chart matches
the 200% expanded swing projection of a larger scale move. Both
targeting below 1.45, near 1.44/1.4380.
- The stochastic failed to roll up from the oversold region in the daily, and in the 4H time-frame was very sharp in decline.
- However looking at the 4H time-frame, we see that the market has
been quietly breaking below the powerlines. The stochastic however
shows strength because the previous rally attempts were weak as well,
so relative to the last 25 bars or so, the current decline is more
consistent so far. The beginning of the US session however brings a
little bit of bullishness, so be cautious and look for failed bullish
attempts to confirm the bearish outlook.
- 1H: The 1H chart shows that the swing was indeed LESS choppy than
the rally attempts. However, in the near-term the market is oversold,
and looks to be rolling up if there is another couple hours of bullish
- Look to see if there is topping action near 1.5038 or 38.2%
retracement area. Such a pullback can help you confirm weak bullish
attempt and therefore readiness to return to the established bearish
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clientsâ€™ transactions and as a result,
CMSâ€™ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
Foreign currency trading involves a substantial risk of loss and may
not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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